The industry was use to beginning FA's get accounts from departing advisor's, and from senior FA's who can't bother with smaller accounts. Hence, the large hurdles and the lack of cold calling ability by many advisors today. 

At the majors, they are at the opposite end of the spectrum, and you won't make a living when you get out with their proposed hurdles.

I have never saw a more backwards business model, and yet people survive and thrive. 

[quote=BullRunt]

ML has two routes for PMD's; first are trainees making less than $50,000 annually and second are those making $50-75,000 annually.  For under $50k, 1 NHH is not required until the Los month 9, then it is 2 (total) by month 12, 3 by 18, 4 by 24, 5 by 30, and finally 6 by the end of the program LOS month 36.  For over $50k, the difference is 7 by month 36 and the they are the number required occur slightly sooner.  The NNA is different for either route as well, but I'll have to get the numbers over the weekend to verify.  If you want more details let me know.

The fact is ML wants an "ideal" client base of $250k HH and above, but as mentioned above you do get paid on HH's down to $100k.  They also have the FAC which allows you to move clients over to the call center, and you get a referral fee if business closes.  I have referred 4 prospects and none have closed and not surprising because I don't blame people for not wanting to strictly work with a call center.  

The whole wirehouse "feel" is gone at Merrill because of the WMBs pushing bank relationships in the office and the BofA compliance breathing down our necks.  If it weren't for my coworkers and BOM, I would struggle with starting here because the minimums would be difficult to meet.  I find that while cold calling has been the bulk of my prospecting, my best leads have come from cold walking and networking.  I am teamed up with a senior advisor with 50/50 split, which has helped my credibility in meetings.   What makes this partnership work is that my success matters to him and we work together.

[/quote]

thanks for this posting. Can someone clarify ? How attractive is the PMD program for transitioning professionals that are already earning very high 5 figure compensation (plus commissions = low 6 figure) but in a differnt industry?   There's no way I can lower my current comp to 50-75k or whatever the PMD pays now. I thought it used to have a 100k tier ?   I am a successful b2b sales vet in industry, and my customers could be  considered to be a target-rich environment of small businesses for asset gathering for 401ks, etc.  I'm scheduled to take the ML PMD math/economics tests next week, and am pretty jazzed about it actually.  However, the above #'s for nnh seems low , almost too easy, unless I'm reading it wrong:  only 1 new account needed after 9 months ?   2 toal after 12, and only  7 total by end of 36 months LOS even at the "experienced" 50-75k salary range ?  It seems like it would be relatively easy for someone to hit those targets even if the yjust had a loose network or specialty niche to tap into.  Or perhaps I'm missing something from the above post?  

Thank you for any insghts.

[quote=FApath]

[quote=BullRunt]

ML has two routes for PMD's; first are trainees making less than $50,000 annually and second are those making $50-75,000 annually.  For under $50k, 1 NHH is not required until the Los month 9, then it is 2 (total) by month 12, 3 by 18, 4 by 24, 5 by 30, and finally 6 by the end of the program LOS month 36.  For over $50k, the difference is 7 by month 36 and the they are the number required occur slightly sooner.  The NNA is different for either route as well, but I'll have to get the numbers over the weekend to verify.  If you want more details let me know.

The fact is ML wants an "ideal" client base of $250k HH and above, but as mentioned above you do get paid on HH's down to $100k.  They also have the FAC which allows you to move clients over to the call center, and you get a referral fee if business closes.  I have referred 4 prospects and none have closed and not surprising because I don't blame people for not wanting to strictly work with a call center.  

The whole wirehouse "feel" is gone at Merrill because of the WMBs pushing bank relationships in the office and the BofA compliance breathing down our necks.  If it weren't for my coworkers and BOM, I would struggle with starting here because the minimums would be difficult to meet.  I find that while cold calling has been the bulk of my prospecting, my best leads have come from cold walking and networking.  I am teamed up with a senior advisor with 50/50 split, which has helped my credibility in meetings.   What makes this partnership work is that my success matters to him and we work together.

[/quote]

thanks for this posting. Can someone clarify ? How attractive is the PMD program for transitioning professionals that are already earning very high 5 figure compensation (plus commissions = low 6 figure) but in a differnt industry?   There's no way I can lower my current comp to 50-75k or whatever the PMD pays now. I thought it used to have a 100k tier ?   I am a successful b2b sales vet in industry, and my customers could be  considered to be a target-rich environment of small businesses for asset gathering for 401ks, etc.  I'm scheduled to take the ML PMD math/economics tests next week, and am pretty jazzed about it actually.  However, the above #'s for nnh seems low , almost too easy, unless I'm reading it wrong:  only 1 new account needed after 9 months ?   2 toal after 12, and only  7 total by end of 36 months LOS even at the "experienced" 50-75k salary range ?  It seems like it would be relatively easy for someone to hit those targets even if the yjust had a loose network or specialty niche to tap into.  Or perhaps I'm missing something from the above post?  

Thank you for any insghts.

[/quote]

Why would your "network" trust you with their money after you have spent all this time in a different industry... your network is useless because no one gives money to a new guy...

Salary won't be $100K... failure rate is too high... nnh maybe low, but look what kind of assets and production you need to stay in program...

Merrill Lynch is gone.  True story.  I don't know what this is.

why would network trust me with their $$?  I formerly worked in lending: completed an intensive credit training program with a commercial bank, including graduate level courses, and professional seminars in  finance/accounting/credit etc.   I've heard "go independent" before but that's besides the point for now, as I'm trying to learn more about the PM program and how it works for professionals considering making the changeover. thanks.    

I am just saying.... Lending and investing is completely different on a trust level..

FAPath

At Merrill Lynch / BofA a PMD's salary will never be above $75k, they restructured their pay after the merger.  While the salary will never be higher than $75k, as an FA in Stage 2 production (after licensing, and 4 month Stage 1) you are eligible for quarterly performance incentives.  It amounts to 15% of your quarter's PCs above and beyond the required cumulative PCs.

An example would be Los month 9 requiring 18,000 PCs for a salary under $50k, FA's total PCs are 28,000 and during that quarter (mos 7-9) they had 20,000 PCs, nets out to be a cash incentive of 20,000 * 15% = $3000.

Also there is monthly compensation which is based on PCs you generate above and beyond monthly salary - 1/3 prior quarter cash incentive. 

At Mos 12, 24, and 36 there are annual wealth choice awards which are 15% of all PCs generated in that 12 month period if the hurdles are met. 

There is the possibility of you coming into this industry and making a decent amount of money but only if you produce.  While these numbers for NNH may "seem" low, the PCs requirements and NNA will keep you busy.  And of course the numbers I stated above were for a lower ($50k) salary then you are looking for.  By the end of the PMD program (36 months) a person making between $50 and $75k is required to have 350,000 in cumulative PCs, $8 million in Net New Annuitized, and 7 Net New Households.  Goodluck with the Hiring Process.

What is PCs? is that gross commission?

thanks bullrunt.  In reality, what is needed to generate , lets say, 10,000 production credits.  In general, I could mulitply that model for 10k PC's by  a factor of 35 and build biz plan around that = 350,000 pc's after 36 month los.  I know im oversimplifying it...but not knowing what goes into creating a production credi, i have to build some kind of model to see what's reasonably do-able.  Maybe PC's are kind of like snipe hunting.  How catch a snipe if you don't know what it is or what it eats, or where it lives or mating habits etc.  Such is a the nature of a  "production credit" to those of us not in the biz, so 350k PC's could be daunting..or it could be achievable if knew more about its nature.  For now, a PC is an an abtract metric, which is why I'm asking here..and will be meeting with an FA I know next Monday to help expore more.  Heck, my target market may already be saturated with FA's also...and I'm not so sure about giving up my good gig in the current economy.

thanks BR.

[quote=BullRunt]

 By the end of the PMD program (36 months) a person making between $50 and $75k is required to have 350,000 in cumulative PCs, $8 million in Net New Annuitized, and 7 Net New Households.  Goodluck with the Hiring Process.

[/quote]

Which means you better put your client's sorry ass in PIA charging 2% at graduation. Otherwise, you will only be able to afford day old tacos at El Pollo Loco .

so production credits are a proxy for earned commissions from what I can tell. In general, a small business with a 600k retirement plan would generate what kind of productiion credit  ?. ?  Some small bizzes have plans for employees, some don't. some new accounts would be -or might be - transfers from other firms, and some may be totally new business, starting a plan from scratch for the small business.   Just trying to learn here from those with insights and experience. thanks.

Production Credits can be likened to earned commission, but remember it still has to be thrown against a grid.  While I work mostly in annuitized personal accounts (PIA), creating a new retirement plan for existing clients, transferring from elsewhere, or modifying an existing plan would all give you PCs.  It completely depends on how the fee structure is.  If a 600k retirement plan is charged a fee of 1% then you have 6000 PCs, splattered on a grid which creates a payout to the FA of some %.   As Otane said above, I use PIA at 1.5% annually for all money up to 1 mill, then 1% for anything above and beyond.  It keeps me fair and yet I can make a living.  1.5% represents my PCs for that account, plain and simple.  While other products have different ways of computing PCs, with annuitized money it can be simple.  Some other things to look at would be Structured Products which give an upfront PC based on % of the money deposited and that only occurs once.  Transactional accounts have the commissions you mentioned and those are your PCs for that.  Hope that helps a little.

thank you yes very much helpful. I appreciate the feedback.

FA PATH

If you tak a 500k 401K from a guy who rolls it over into an ML account. the rule of thumb is 1% of asset =#PCs.  For every $30million in assets under mgmt you will make $100,000.  I am a transitioning professional w/25 years in sales in another BtoB industry. Good program, Exams not easy but doable if you put the time in, Lots and I mean lots to learn.

Plan on prospecting your tush off. Make a list of everyone you know that could have $250K or more in investable assets and more. Then ask yourself if you could call and ask them about there money. This is what you will ultimately need to be doing every day. At Jones you have to knock on 150 doors everyday for two years. If you don't the fire you because of your "activity level" This isn't necessarily easier just a bit more professional.

 Just got licensed and about to close a $2million account. Wish I did this ten years ago. However, plan on having a nest egg to get you thru year 2.

The Wealth bankers don't bother you too much. Looking to write mortgages to 780+ FICA scores and Max 70/30 LTV. They can't find these prospects anywhere else but the ML accounts. Just another arrow in the quiver.

ML still has the brand, products and training for a second career.

Help: Annuity & Insurance Payout

Hi, I am about to start the PMDP program. I had worked for a Insurance based financial services company, and I am bringing a client who needs a minimum of 1 million immediate annuity. I need to know what the PC would be on this product with the following assumptions: A MetLife 1 million SPIA pays 4% gross dealer concession (that would be $40,000 GDC). Does anyone know the approximate PC for this case?  I also have the same question for life insurance.  Does Merrill pay the same payout (47% for new trainees) for annuities and life insurance?

Thank you for your help! 

Keep in mind that a PC does not go into your pocket. Look at it as gross commission. If you are in the PMD program they will not allow you to close this business until series 7 and 66 passed and you have your life/health license. After 7/66 you will get a production number. Usually after 4 months. Not sure of the type of annuity but assuming they will put down $1m (You will find they are crazy to do this) it will generally give you 4-6% PC's of which you will see 48% of less your salary. They are usually 50bps trails as well. All depends on the product. But they really aren't paying you to do this kind of selling. They want wealth gathering into annuitized investment programs. They do not want you only selling insurance.

BEAR, thank you so much for your input. I sincerely appreciate it.  Please share more if you don't mind.

I already have my 7/66, and since I am very knowledgeable in risk managed and income products, my strategy is to get a foot in the door via these risk managed products. The man who is requesting this is a man who created the 403(b) plan with some senators back in the day. He was in the financial services industry for over 50 years.

Going back to your input, so if I sell a 1 mill product that pays 4% GDC (I've head that "PC"s are lower than GDC) and assume that I get 3.5% PC on it, then it's 35,000 PC for which I'd get 47% of (minus salary).  I hope they will pay this on the month that it settles, which would be a nice lump sum.  It will give me a good start. And I know I will get a $250k or higher managed account from that too.

[quote=The BEAR]

Keep in mind that a PC does not go into your pocket. Look at it as gross commission. If you are in the PMD program they will not allow you to close this business until series 7 and 66 passed and you have your life/health license. After 7/66 you will get a production number. Usually after 4 months. Not sure of the type of annuity but assuming they will put down $1m (You will find they are crazy to do this) it will generally give you 4-6% PC's of which you will see 48% of less your salary. They are usually 50bps trails as well. All depends on the product. But they really aren't paying you to do this kind of selling. They want wealth gathering into annuitized investment programs. They do not want you only selling insurance.

[/quote]

I'm not sure with your immediate annuity situation, but compliance is really cracking down and only allowing B share variables.  The grid for B shares is lower.

[quote=blackheart]

I'm not sure with your immediate annuity situation, but compliance is really cracking down and only allowing B share variables.  The grid for B shares is lower.

[/quote]

Where?  At ML?  News to me.  Grid is grid.  And I saw nothing of compliance limiting to B shares.

They will be very hard pressed to pay you 30-40K or whatever the amount is when you have not brought in any net annuitized Assets or housholds. You may see some of it LOS month 4 which will be 7 months after you get your number not when it settles. Remember it's a Bank not an insurance company.